Employers across Australia will have new superannuation obligations under a range of reforms. From 1 July 2013, they will need to:
- Increase the minimum rate for super guarantee payments on behalf of employees from 9% to 9.25%
- Start making super guarantee payments for employees aged 70 years or older, as the existing upper age limit will be removed.
- Pay these compulsory contributions to a complying super fund at least four times a year.
The ATO are sending information out to all employers in April to raise awareness of these (and future) changes.
Key superannuation rates and thresholds
The super guarantee charge percentage (%)
|
Period |
Super guarantee rate (charge percentage) |
|
1 July 2003 - 30 June 2013 |
9% |
|
1 July 2013 - 30 June 2014 |
9.25% |
|
1 July 2014 - 30 June 2015 |
9.5% |
|
1 July 2015 - 30 June 2016 |
10% |
|
1 July 2016 - 30 June 2017 |
10.5% |
|
1 July 2017 - 30 June 2018 |
11% |
|
1 July 2018 - 30 June 2019 |
11.5% |
|
1 July 2019 - 30 June 2020 and onwards |
12% |
Employer contributions need to be made on at least a quarterly basis
|
Quarter |
Period |
|
1 |
1 July - 30 September |
|
2 |
1 October - 31 December |
|
3 |
1 January – 31 March |
|
4 |
1 April – 30 June |
Concessional contributions cap
Concessional contributions include:
- Employer contributions (including contributions made under a salary sacrifice arrangement)
- Personal contributions claimed as a tax deduction by a self-employed person.
|
Income Year |
Amount of Cap |
|
2013-14 |
$25,000.00 |
|
2012-13 |
$25,000.00 |
|
2011-12 |
$25,000.00 |
|
2010-11 |
$25,000.00 |
|
2009-10 |
$25,000.00 |
|
2008-09 |
$50,000.00 |
|
2007-08 |
$50,000.00 |
In accordance with section 960-285 of the Income Tax Assessment Act 1997 (ITAA 1997), the concessional contributions cap is indexed in line with average weekly ordinary time earnings (AWOTE), in increments of $5,000 (rounded down). The new indexed amount is generally available each February.
For more information on super contributions please refer to http://www.ato.gov.au/individuals/content.aspx?doc=/content/00106372.htm
For more information in regards to key superannuation changes, rates and thresholds please refer to http://www.ato.gov.au/businesses/content.aspx?doc=/content/00249857.htm&pc=001/003/090/004/001&mnu=0&mfp=&st=